SMRs and AMRs

Friday, January 05, 2007

House Approves Changes to Budget Rules

By William Branigin and Lori Montgomery
Washington Post

The House of Representatives today passed budget rule changes to rein in pork-barrel spending and reinstitute pay-as-you-go guidelines, requiring tax cuts or spending increases on entitlement programs to be offset in the budget to avoid swelling deficits.

On the second day of the new congressional session under Democratic control, the House voted 280-154 to approve the rule changes -- part of an ambitious campaign by new House Speaker Nancy Pelosi (D-Calif.) to enact a series of reforms in the term's first 100 hours.

The changes were contained in a resolution governing lawmakers' pet projects, known as "earmarks," and setting requirements for spending bills. They were among the first acts promoted by House Democrats, who took control of Congress yesterday for the first time in a dozen years as a result of their gains in November's midterm elections.

The rule changes jeopardize President Bush's effort to extend his tax cuts, most of which expire at the end of 2010. Bush has called on Congress to make the cuts permanent, saying they are vital to continued economic growth. Democrats have charged that the tax cuts primarily benefit the wealthiest Americans and are major contributors to the massive budget deficits recorded under the Bush administration.

In debate, House Republicans praised the part of the resolution regarding earmarks, saying it would bring transparency to the process. But they criticized the pay-as-you-go rule, known as "paygo," asserting that it would lead to higher taxes.

Such rules are not binding and can be changed or waived by House leaders. Since they are not contained in legislation, they are not subject to a presidential veto.

(More, here.)

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